The government has shortlisted four public sector banks for privatization. The banks shortlisted include Bank of Maharashtra, Bank of India, Indian Overseas Bank, and Central Bank of India. By selling to public sector banks, the government wants to earn revenue so that the money can be used on government schemes. If your account is in these banks, is your money safe?
Currently, the government wants to start with the privatization of second-tier banks in the banking sector. Finance Minister Nirmala Sitharaman had announced the privatization of two public sector banks earlier this month while presenting the Budget 2021-22.
These four banks have 112000 employees
Bank unions estimate that the Bank of India has about 50,000 employees and the Central Bank of India has 33,000 employees, while Indian Overseas Bank has 26,000 employees and the Bank of Maharashtra has about 13,000 employees.
Two acts will be amended for privatization
The government will bring amendments to two acts this year to pave the way for the privatization of public sector banks. Privatization will require amendments to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
Is your money safe?
Customers holding an account with any of these banks will be concerned about their money. But they shouldn’t worry because their money is completely safe. The government aims to utilize divestment proceeds to finance various social sector and developmental programs as well as promote private capital, technology, and best management practices in central government public sector enterprises.